The Congress further declares that the national policy for the attainment of this purpose shall be to encourage and facilitate the efforts of our urban communities to develop and carry out local programs to meet effectively the needs resulting from urban, suburban, and metropolitan growth and change, including the preparation of comprehensive plans for necessary community development and redevelopment; the elimination of slums and blight; the provision of decent homes in a suitable living environment for all American families; the provision of adequate locations for industrial and commercial facilities to create new employment opportunities and to assist in the establishment of an increased and more stable tax base; the promotion of effective mass transportation within urban areas and the coordination of transportation plans with the needs of urban communities as part of the overall planning for such communities; the provision of additional public facilities and improvements commensurate with current and future needs; the provision of open areas, parks, and other facilities for recreation; and the fostering of the provision or expansion of facilities for educational and cultural pursuits, thus contributing to the improvement of conditions under which people live and work and under which business enterprise may expand and prosper, to an economy of maximum production, employment, and purchasing power, and to the growth and security of the Nation.

To carry out such national purpose and policy, and in recognition of the increasing importance of urban communities in our national life, the Congress finds that establishment of an executive department is desirable to achieve the best administration of the principal programs of the Federal Government which provide assistance for housing and for the development and redevelopment of our urban communities; to give leadership within the executive branch in securing the coordination of the various Federal activities which have a major effect upon urban, suburban, or metropolitan development and redevelopment; to encourage the solution of urban, suburban, and metropolitan problems through State, local, and private action, including promotion of interstate, regional, and metropolitan cooperation; and to provide for full and appropriate consideration, at the national level, of the needs and interests of urban areas and of the people who live and work in them.

(b) The Department of Urban Affairs and Housing established by this Act, and any other departments, agencies, or instrumentalities of the United States having functions, powers, or duties, under this or any other Act, which have a major effect upon urban, suburban, or metropolitan development and redevelopment shall exercise such functions, powers, and duties in accordance with the national policy declared by this Act and in such manner as will facilitate sustained progress toward the attainment of the national purpose established by this Act.

ESTABLISHMENT OF DEPARTMENT

SEC. 3. (a) There is hereby established at the seat of government an executive department to be known as the Department of Urban Affairs and Housing (hereinafter referred to as the "Department"). There shall be at the head of the Department a Secretary of Urban Affairs and Housing (hereinafter referred to as the "Secretary"), who shall be appointed by the President by and with the advice and consent of the Senate. The Department shall be administered under the supervision and direction of the Secretary. The Secretary shall receive compensation at the rate now or hereafter prescribed by law for the heads of executive departments.

(b) The Secretary shall, among his responsibilities, conduct continuing comprehensive studies, and make available findings, with respect to the problems of housing and urban development; advise the President with respect to Federal programs and activities contributing to the achievement of national policy declared by this Act; develop and recommend to the President policies for fostering the orderly growth and development of the Nation's urban communities; exercise leadership at the direction of the President in coordinating Federal activities affecting urban areas; provide technical assistance and information to State and local governments in developing solutions to urban problems; and encourage comprehensive planning by the State and local governments with a view to coordinating Federal, State, and community development activities at the local level.

UNDER SECRETARY AND OTHER OFFICERS

SEC. 4. (a) There shall be in the Department an Under Secretary, three Assistant Secretaries, and a General Counsel, who shall be appointed by the

President by and with the advice and consent of the Senate, who shall receive compensation at the rate now or hereafter provided by law for under secretaries, assistant secretaries, and general counsels, respectively, of executive departments, and who shall perform such functions, powers, and duties as the Secretary shall prescribe from time to time.

(b) There shall be in the Department an Administrative Assistant Secretary, who shall be appointed, with the approval of the President, by the Secretary under the classified civil service, who shall perform such functions, powers, and duties as the Secretary shall prescribe from time to time, and whose annual rate of compensation shall be the same as that now or hereafter provided by law for administrative assistant secretaries of executive departments.

TRANSFERS TO DEPARTMENT

SEC. 5. (a) Except as otherwise provided in subsection (b) of this section, there are hereby transferred to and vested in the Secretary all of the functions, powers, and duties of the Housing and Home Finance Agency, of the Federal Housing Administration and the Public Housing Administration in that Agency, and of the heads and other officers and offices of said agencies. (b) The Federal National Mortgage Association, together with its functions, powers, and duties, is hereby transferred to the Department. The next to the last sentence of section 308 of the Federal National Mortgage Association Charter Act and the item numbered (39) of section 106 (a) of the Federal Executive Pay Act of 1956 are hereby repealed, and the position of the President of said Association is hereby allocated among the positions referred to in the proviso of section 7 (c) hereof.

CONFORMING AMENDMENTS

SEC. 6. (a) Section 19(d) (1) of the Act of June 25, 1958, is hereby amended by striking out the period at the end thereof and inserting a comma and the following: "Secretary of Health, Education, and Welfare, Secretary of Urban Affairs and Housing."

(b) Section 158 of the Revised Statutes (5 U.S.C. 1) is amended by adding at the end thereof: "Eleventh. The Department of Urban Affairs and Housing." (c) The amendment made by subsection (b) of this section shall not be construed to make applicable to the Department any provision of law inconsistent with this Act.

ADMINISTRATIVE PROVISIONS

SEC. 7. (a) The personnel employed in connection with, and the assets, liabilities, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, or other funds held, used, arising from, or avail. able or to be made available in connection with, the functions, powers and duties transferred by section 5 of this Act are hereby transferred with such functions, powers, and duties, respectively.

(b) No transfer of functions, powers, and duties shall at any time be made within the Department in connection with the secondary market operations of the Federal National Mortgage Association unless the Secretary finds that the rights and interests of owners of outstanding common stock issued under the Federal National Mortgage Association Charter Act will not be adversely affected thereby.

(c) The Secretary is authorized, subject to the civil service and classification laws, to select, appoint, employ, and fix the compensation of such officers and employees, including attorneys, as shall be necessary to carry out the provisions of this Act and to prescribe their authority and duties: Provided, That any other provision of law to the contrary notwithstanding, the Secretary may fix the compensation for not more than nine positions in the Department at annual rates not more than $1,500 in excess of the compensation now or hereafter fixed by law for grade 18 of the General Schedule established by the Classification Act of 1949.

(d) Subject to the standards and procedures prescribed by section 505 of the Classification Act of 1949, the Secretary is authorized to place not to exceed thirty-five positions in grades 16, 17, or 18 of the General Schedule established by such Act, and such positions shall be in addition to (i) the number of positions authorized by section 505 of the Classification Act of 1949 to be placed in such grades and (ii) the number of positions in such grades which

were allocated under section 505 to any agency or organizational unit the funetions, powers, and duties of which are transferred pursuant to this Act.

(e) The Secretary may delegate any of his functions, powers, and duties to such officers and employees of the Department as he may designate, may authorize such successive redelegations of such functions, powers, and duties as he may deem desirable, and may make such rules and regulations as may be necessary to carry out his functions, powers, and duties. The second proviso of section 101 (c) of the Housing Act of 1949 is hereby repealed.

(f) The Secretary may obtain services as authorized by section 15 of the Act of August 2, 1946, at rates not to exceed $100 per diem for individuals. (g) The Secretary is authorized to establish a working capital fund, to be available without fiscal year limitation, for expenses necessary for the maintenance and operation of such common administrative services as he shall find to be desirable in the interest of economy and efficiency in the Department, including such services as a central supply service for stationery and other supplies and equipment for which adequate stocks may be maintained to meet in whole or in part the requirements of the Department and its agencies; central messenger, mail, telephone, and other communications services; procurement and management of office space; central services for document reproduction and for graphics and visual aids; and a central library service. In addition to amounts appropriated to provide capital for said fund, which appropriations are hereby authorized, the fund shall be capitalized by transfer to it of such stocks of supplies and equipment on hand or on order as the Secretary shall direct. Such fund shall be reimbursed from available funds of agencies and offices in the Department for which services are performed at rates which will return in full all expenses of operation, including reserves for accrued annual leave and for depreciation of equipment.

(h) The Secretary shall cause a seal of office to be made for the Department of such device as he shall approve, and judicial notice shall be taken of such seal.

ABOLITIONS

SEC. 8. There are hereby abolished the Housing and Home Finance Agency, the Federal Housing Administration, the Public Housing Administration, and the National Housing Council, the offices of Housing and Home Finance Administrator, Federal Housing Commissioner, Public Housing Commissioner, Deputy Housing and Home Finance Administrator, Urban Renewal Commissioner, and Community Facilities Commissioner, the position of Director referred to in section 106(a)(1) of the Housing Act of 1949, the position of Director referred to in section 304 of the Housing Act of 1948, and any other positions heretofore established by law in the aforesaid agencies, but not positions established by law in the Federal National Mortgage Association.

ANNUAL REPORT

SEC. 9. The Secretary shall, as soon as practicable after the end of each calendar year, make a report to the President for submission to the Congress on the activities of the Department during the preceding calendar year.

SAVINGS PROVISIONS

SEC. 10. (a) No suit, action, or other proceeding lawfully commenced by or against the head of any agency or any other officer abolished by the provisions of this Act, in his official capacity or in relation to the discharge of his official duties, or by or against any agency abolished by this Act, shall abate by reason of the taking effect of the provisions of this Act; but the court may, on motion or supplemental petition filed at any time within twelve months after such taking effect, showing a necessity for the survival of such suit, action, or other proceeding to obtain a settlement of the questions involved, allow the same to be maintained by or against the Secretary or such other officer or office of the Department as may be appropriate.

(b) Except as may be otherwise expressly provided in this Act, all powers and authorities conferred by this Act shall be cumulative and additional to and not in derogation of any powers and authorities otherwise existing. All rules, regulations, orders, authorizations, delegations, or other actions duly issued, made, or taken by or pursuant to applicable law, prior to the effective date of this Act, by any agency, officer, or office abolished by this Act pertaining to any functions,

powers, and duties transferred by this Act shall continue in full force and effect after the effective date of this Act until modified or rescinded by the Secretary or such other officer or office of the Department as, in accordance with applicable law, may be appropriate. With respect to any function, power, or duty transferred by or under this Act and exercised hereafter, reference in another Federal statute to the Housing and Home Finance Agency or to any officer, office, or agency therein, except the Federal National Mortgage Association and its officers, shall be deemed to mean the Secretary.

SEPARABILITY

SEC. 11. Notwithstanding any other evidence of the intent of Congress, it is hereby declared to be the intent of Congress that if any provision of this Act, or the application thereof to any persons or circumstances, shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act or its application to other persons and circumstances, but shall be confined in its operation to the provision of this Act, or the application thereof to the persons and circumstances, directly involved in the controversy in which such judgment shall have been rendered.

EFFECTIVE DATE AND INTERIM APPOINTMENTS

SEC. 12. (a) The provisions of this Act shall take effect upon the expiration of the first period of sixty calendar days following the date on which this Act is approved by the President, or on such earlier date as the President shall specify by Executive order published in the Federal Register, except that the President may nominate, and by and with the advice and consent of the Senate may appoint, any of the officers provided for in sections 3(a) and 4(a) of this Act at any time after the date this Act is approved by the President.

(b) In the event that one or more officers required by this Act to be appointed by and with the advice and consent of the Senate shall not have entered upon office on the effective date of this Act, the President may designate any person who was an officer of the Housing and Home Finance Agency immediately prior to said effective date to act in such office until the office is filled as provided in this Act or until the expiration of the first period of sixty days following said effective date, whichever shall first occur. While so acting such persons shall receive compensation at the rates provided by this Act for the respective offices in which they act.

[S. 289, 87th Cong., 1st sess.]

A BILL To provide for the establishment of a Department of Urban Affairs Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

FINDINGS AND PURPOSE

SECTION 1. (a) The Congress finds and declares

(1) that most of the population growth of this country has occurred in the last two decades in urban areas;

(2) that many important Federal programs such as housing, urban renewal and slum clearance, pollution control, airport and highway construction, and defense activities have a primary impact on urban areas; and

(3) that many pressing problems facing the people of the United States grow out of the lack of knowledge, understanding and coordination of proper techniques in the utilization of urban land.

(b) Recognizing the invaluable contribution made by the Department of Agriculture in correlating Federal activities relating to the Nation's farms, and in promoting efficient use of farmlands and rural areas, the Congress enacts this Act with the purpose of providing a corresponding executive department (1) to coordinate the various Federal activities having a primary impact on urban areas, (2) to insure equitable and reasonable distribution of Federal assistance to urban centers, (3) to foster high level consideration of the pressing social and economic problems growing out of the heavy concentration of the Nation's population in urban areas, and (4) to further knowledge of the principles of unified planning and of using efficiently urban lands.

CREATION OF DEPARTMENT

SEC. 2. (a) In order to accomplish the purposes set forth in section 1, there is hereby established an executive department to be known as the Department of Urban Affairs (hereafter referred to in this Act as the "Department"), at the head of which shall be a Secretary of Urban Affairs (hereafter referred to in this Act as the "Secretary") who shall be appointed by the President, by and with the advice and consent of the Senate. Under the Secretary shall be an Under Secretary and two Assistant Secretaries who shall perform such functions as the Secretary shall prescribe and who shall be appointed in the same manner as the Secretary.

(b) There is hereby created in the Department an Urban Advisory Council. The members of this Council shall be appointed by the President upon nomination by the Secretary and shall include persons outside the Federal service with broad experience and interest in urban and related problems. The following Federal officials are hereby designated as members ex officio of the Urban Advisory Council: Secretary of Labor, Secretary of Commerce, Secretary of Health, Education, and Welfare. The President may designate other Federal officials as ex officio members of the Council. Members of the Council shall receive no compensation for their services but shall be reimbursed for necessary travel and subsistence expenses as provided in the Travel Expense Act of 1949 as amended. The Council shall meet at the call of the Secretary, but not less than twice a year.

RESEARCH AND TECHNICAL ASSISTANCE

SEC. 3. (a) The Secretary shall (1) conduct a continuing study of problems peculiar to urban and metropolitan areas, including problems of coordinating Federal and Federal-State programs in such areas, and (2) provide technical assistance to State and local governmental bodies in developing solutions to such problems. Such assistance shall include, whenever appropriate, the dissemination to interested bodies of the results of the studies undertaken pursuant to this section.

(b) The Secretary shall from time to time make such recommendations to the Congress, as a result of the studies to be undertaken under this section and after consultation with appropriate representatives of State and local governments, as he shall determine to be appropriate.

(c) As used in this section the term "State" includes the District of Columbia and the Commonwealth of Puerto Rico.

FUNCTIONS AND TRANSFERS

SEC. 4. The President shall submit to the Congress reorganization plans providing for the transfer of such functions from officers or agencies of the executive branch of the Government to the Secretary as the President deems appropriate to assist in accomplishing the purposes of this Act.

COMPENSATION OF PRINCIPAL OFFICERS

SEC. 5. The Secretary, Under Secretary, and Assistant Secretaries shall receive compensation at the rates prescribed for these positions in the other executive departments.

SEAL

SEC. 6. The Secretary shall cause a seal of office to be made for the Department, of such design as the President shall approve, and judicial notice shall be taken thereof.

DELEGATION OF AUTHORITY

SEC. 7. The Secretary may from time to time make such provisions as he deems appropriate authorizing the performance of any of the functions of the Secretary by any other officer, or by an agency employee, of the Department.

AMENDMENT

SEC. 8. Section 158 of the Revised Statutes of the United States, as amended (5 U.S.C. 1), is amended by adding at the end thereof the following: "Eleventh: The Department of Urban Affairs."